Bitcoin transformed from an experimental investment option to a mainstay asset class equivalent to digital gold. The preceding year-end saw both BTC and Ether scaling all-time highs while other crypto tokens exhibited manifold growth. The subsequent fall afterward may have been perceived as market rectification, but analysts and predictors still remain optimistic. Let us see what the forecasts are for 2022.
A revolutionary innovation initially designed as an alternative to fiat usage, cryptocurrencies are also being used to augment existing financial services. There are multiple segmentations primarily based upon the objective purpose, but the global relevance of bitcoins and other digital assets are apparent with the current global crypto market cap standing above $1.8 trillion.
The world’s first cryptocurrency had fallen over 40% after peaking at over $69,000. Experts are still positive about Bitcoin, led by multiple factors. The global demand has risen significantly for Bitcoin ETFs. In addition, the crypto asset still holds the lion‘s share of the global crypto market cap. Market research analysts predict Bitcoin will reach $70000 by the 2022 year-end, and the coveted $100,000 mark within 2023. Current valuations stand at US$ 47,096.30
2022 is being seen as the “make-or-break” year for Ether. It is the native token of the Ethereum blockchain, which is used as the base platform for several blockchain-powered apps, smart contracts, DeFi, and more. The market buzz surrounding ETH is logical following its update declaration into ETH 2.0. It rallied from a low of $2200 currently standing at $3,306.21. However, market predictions suggest its valuation could grow as much as 400% within the year, above its all-time high of $4800.
Launched in March 2020, Solana is one of the most efficient and quickest blockchains in existence with censor-resistance and high security. Its valuation started ascending in 2021 jumping from 42 to 7 in market cap rankings within a span of 8 months. SOL did not fall as strongly as BTC and ETH, though it has corrected its valuations from $260 to $110.33 at the time of writing with 24 hours trading volume of $3.6 billion. Experts predict the descent is temporary, SOL will gather its stability back and hit the price range of $300-$400 within 2022.
The popular meme-centric cryptocurrency had everyone baffled with its sudden rise and relevance following Elon Musk’s comments. Technical analysts believe that DOGE will still retain its volatility and suggest owners keep updates on their investment. They also came to the conclusion that it is a worthy long-term investment despite its current valuation of $0.15. Estimates suggest DOGE may reach $0.35 by year-end, a 191% hike from current levels.
Dubbed as the ETH killer by multiple crypto analysts, Cardano or ADA remains a viable threat to Ethereum. It operates on a POS mechanism, currently working on a multi-asset ledger combining a platform with smart contracts for verification. ADA displayed a 600% rise in valuations within 2021. Currently standing at $1.19, analysts suggest that the price will cross $3.00 by the end of the year.
Current crypto markets may exhibit corrections owing to multiple factors. However, the recent drop is temporary, as experts predict the market to soon recover and scale past newer horizons.